Quarterly report pursuant to Section 13 or 15(d)

FAIR VALUE MEASUREMENTS (Tables)

v3.19.3
FAIR VALUE MEASUREMENTS (Tables)
 9 Months Ended
Sep. 30, 2019
Fair Value Disclosures [Abstract]  
Fair Value, by Balance Sheet Grouping
The following represents the assets and liabilities measured at fair value:
 
(In Millions)
 
September 30, 2019
 
Quoted Prices in Active
Markets for Identical Assets/Liabilities
(Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
 
Total
Assets:
 
 
 
 
 
 
 
Cash equivalents
$
—

 
$
272.5

 
$
—

 
$
272.5

Derivative assets
—

 
—

 
72.8

 
72.8

Total
$
—

 
$
272.5

 
$
72.8

 
$
345.3

Liabilities:
 
 
 
 
 
 
 
Derivative liabilities
$
—

 
$
2.4

 
$
30.2

 
$
32.6

Total
$
—

 
$
2.4

 
$
30.2

 
$
32.6

 
(In Millions)
 
December 31, 2018
 
Quoted Prices in Active
Markets for Identical Assets/Liabilities
(Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
 
Total
Assets:
 
 
 
 
 
 
 
Cash equivalents
$
0.8

 
$
542.6

 
$
—

 
$
543.4

Derivative assets
—

 
0.1

 
91.4

 
91.5

Total
$
0.8

 
$
542.7

 
$
91.4

 
$
634.9

Liabilities:
 
 
 
 
 
 
 
Derivative liabilities
$
—

 
$
3.7

 
$
—

 
$
3.7

Total
$
—

 
$
3.7

 
$
—

 
$
3.7


Fair Value, Recurring and Nonrecurring, Valuation Techniques
The following table illustrates information about qualitative and quantitative inputs and assumptions for the assets and liabilities categorized in Level 3 of the fair value hierarchy:
 
Qualitative/Quantitative Information About Level 3 Fair Value Measurements
 
 
 
(In Millions)
Fair Value at September 30, 2019
 
Balance Sheet
Location
 
Valuation Technique
 
Unobservable Input
 
Range or Point Estimate
(Weighted Average)
 
 
Customer supply agreement
 
$
71.2

 
Derivative assets
 
Market Approach
 
Management's Estimate of Hot-Rolled Coil Steel Price per net ton
 
$631 - $700
$(633)
 
Provisional pricing arrangements
 
$
1.6

 
Derivative assets
 
Market Approach
 
Management's Estimate of Platts 62% Price per dry metric ton for respective contract period
 
$100
 
Provisional pricing arrangements
 
$
30.2

 
Derivative liabilities
 
Market Approach
 
PPI Estimates
 
172 - 214
(198)
 
 
 
Management's Estimate of Platts 62% Price per dry metric ton for respective contract period
 
$87 - $100
$(96)
 
 
Atlantic Basin Pellet Premium per metric ton
 
$59

Fair Value, Assets Measured On Recurring Basis, Unobservable Input Reconciliation
The following tables reconcile the changes in fair value of financial instruments measured at fair value on a recurring basis using significant unobservable inputs (Level 3):
 
(In Millions)
 
Level 3 Assets
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2019
 
2018
 
2019
 
2018
Beginning balance
$
118.1

 
$
174.6

 
$
91.4

 
$
49.5

Total gains (losses) included in earnings
(6.5
)
 
139.0

 
83.1

 
341.8

Settlements
(38.8
)
 
(123.0
)
 
(101.7
)
 
(200.7
)
Ending balance - September 30
$
72.8

 
$
190.6

 
$
72.8

 
$
190.6

Total gains (losses) for the period included in earnings attributable to the change in unrealized gains on assets still held at the reporting date
$
(6.5
)
 
$
15.9

 
$
81.8

 
$
141.0


Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation
 
(In Millions)
 
Level 3 Liabilities
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2019
 
2018
 
2019
 
2018
Beginning balance
$
—

 
$
(3.0
)
 
$
—

 
$
(1.7
)
Total losses included in earnings
(34.4
)
 
(3.1
)
 
(39.7
)
 
(7.4
)
Settlements
4.2

 
0.4

 
9.5

 
3.4

Ending balance - September 30
$
(30.2
)
 
$
(5.7
)
 
$
(30.2
)
 
$
(5.7
)
Total losses for the period included in earnings attributable to the change in unrealized losses on liabilities still held at the reporting date
$
(30.2
)
 
$
(2.7
)
 
$
(30.2
)
 
$
(5.7
)

Schedule Of Carrying Value And Fair Value Of Financial Instruments A summary of the carrying value and fair value of other financial instruments were as follows:
 
 
 
(In Millions)
 
 
 
September 30, 2019
 
December 31, 2018
 
Classification
 
Carrying
Value
 
Fair Value
 
Carrying
Value
 
Fair Value
Long-term debt:
 
 
 
 
 
 
 
 
 
Secured Notes
 
 
 
 
 
 
 
 
 
$400 Million 4.875% 2024 Senior Notes
Level 1
 
$
393.2

 
$
408.9

 
$
392.1

 
$
370.2

Unsecured Notes
 
 
 
 
 
 
 
 
 
$700 Million 4.875% 2021 Senior Notes
Level 1
 
—

 
—

 
123.8

 
122.3

$316.25 Million 1.50% 2025 Convertible Senior Notes
Level 1
 
243.8

 
345.8

 
235.2

 
352.4

$1.075 Billion 5.75% 2025 Senior Notes
Level 1
 
463.7

 
466.2

 
1,048.8

 
962.0

$750 Million 5.875% 2027 Senior Notes
Level 1
 
715.5

 
712.2

 
—

 
—

$800 Million 6.25% 2040 Senior Notes
Level 1
 
292.9

 
254.4

 
292.8

 
232.8

ABL Facility
Level 2
 
—

 
—

 
—

 
—

Fair value adjustment to interest rate hedge
Level 2
 
—

 
—

 
0.2

 
0.2

Total long-term debt
 
 
$
2,109.1

 
$
2,187.5

 
$
2,092.9

 
$
2,039.9